Co-op Bank Reports KSh 19.7 Billion Profit for H1 2025

Co-op Bank has posted a strong performance for the first six months of year 2025, with a Profit Before Tax of KSh 19.7 billion, up 8.3% from KSh 18.2 billion in H1 2024. After-tax profit rose 8.4% to stand at KSh 14.1 billion from KSh 13.0 billion a year earlier.

The strong performance by the Bank is in line with the Group's strategic focus on sustainable growth, resilience, and agility, riding on the 'Soaring Eagle' Transformation Agenda.

Highlights of H1 2025 Performance

1. Return on Equity reached a competitive 19.9%.
2. Total Assets increased by 13.2% to KSh 811.9 billion.
3. Customer Deposits surged 7.9% to KSh 547.7 billion, while Net Loans and Advances increased by 4.2% to KSh 391.3 billion.
4. Shareholders' Funds grew 23.4% to KSh 156.3 billion, boosted by
5. retained earnings of KSh 18.4 billion.
6. Operating Income increased 10.8% to KSh 43.5 billion, driven by a
7. 23.1% rise in net interest income.
8. Operating Expenses rose 13.0%, with the Cost-to-Income Ratio standing at 44.9%, a significant improvement from 59% back in 2014 when the Bank begun the Growth and Efficiency journey.

Digital Momentum & Customer Inclusion

1. Over 90% of transactions now happen through digital and alternative channels, supported by a robust omni-channel platform (web, mobile, USSD), 622 ATMs, CDMs, and 16,000+ Co-op kwa Jirani agents.
2. The M-Co-op Cash mobile wallet disbursed KSh 36.4 billion in loans year-to-date, of which Ksh 5.7 Billion was to MSMES.
3. Directors: John Murugu (Chairman), Dr. Gideon Muriuki (Group Managing Director & CEO), M. Maloriza (Vice Chairman), J. Sitienel, B. Simiyu, W. Ongoro, R. Kimanthi, Weda Welton (Mrs), Alice Mwololo (Mrs), Margaret Karangatha (Mrs), L. Karissa, G. Mburia, D. Muthigank
4. The MSME loan portfolio represents 17.3% of the Bank's portfolio, with 249,319 customers benefiting from tailored packages and 68,800 from training.
5. A national network of 619 FOSA outlets continues extending financial services to remote areas and supports the 15 million-member co-operative movement.

Expanding Physical Reach & Team

1. Branch network expanded to 212 outlets, with 15 new branches opened across Kenya.
2. Kingdom Bank and Co-op Bank of South Sudan added new branches in Machakos and Wau, hence a network of 23 branches and 5 branches respectively.
3. Staff strength increased to 5,850, creating 450 new jobs from 2023.

Performance of Subsidiaries

1. Co-op Trust Investment Services Ltd delivered KSh 360.8 million PBT, up 152.8%, with Funds Under Management at KSh 461.7 billion, now one of the largest Fund Managers in the industry.
2. Co-op Bancassurance Intermediary Ltd earned KSh 790.8 million PBT.
3. Co-op Bank of South Sudan Ltd posted a restated profit of KSh 56.9 million after accounting for hyperinflation.
4. Kingdom Bank Ltd generated KSh 491.1 million PBT.
5. Kingdom Securities Ltd earned KSh 63.2 million PBT.

ESG Leadership & Community Impact

1. Named Most Sustainable Bank in Kenya at the 2024 Kenya Bankers' Sustainable Finance Catalyst Awards-its fifth win in seven years.
2. Made significant commitments in climate risk capacity-building initiatives and developed a Climate Strategy Roadmap in support of SDG 13 'Take urgent action to combat climate change and its impacts'.
3. Co-op Bank Foundation continues to provide scholarships and career growth to gifted but needy students, supporting 11,815 students to date.

Recognition

The Bank was feted at the 21st Edition of Energy Management Awards (EMA) 2025 and named Winner, Financial Institution Award. The Awards recognize commitment to optimizing energy utilization in operations.

Conclusion

Co-operative Bank Group remains steadfast in advancing its strategic priorities, firmly grounded in resilience and growth across diverse economic sectors. Our success is powered by:

1. A universal banking model that balances comprehensive service offerings with operational agility.
2. A robust digital presence that ensures seamless accessibility, supported by an industry-leading omni-channel platform.
3. An extensive physical footprint comprising a countrywide branch network, ATMs and agency outlets, fortifying our reach across all regions of the country.
4. A deep and growing customer base currently standing at over 9.4 million account-holders.
5. The unique advantage of being rooted in the largest co-operative movement in Africa-boasting 15 million members-which underscores our unique synergies and deep community integration.

Source: TUKO.co.ke